What is the second step after identifying business ideas?
shorten your list of choices through a screening
process
Why is it important to screen a business opportunity?
Testing a business idea is crucial to its success. Assuming an idea will be a big hit, risking
a great deal of time, money and other resources invested in its launch.
What are the screening processes to yourself as an entrepreneur?
- Your personal preference
- Customer Requirements
- Viability
- Profitability
- Innovation or Differentiation
Intangible personal investment that you have put in your business: your knowledge, experience, talents and skills, and personal interest.
Your personal preference
Your product/services, consequently, should be very convenient and generally portable to accommodate their needs.
Customer Requirements
Ask yourself if the product/service is actually feasible considering the resources available to us.
Viability
One of the benefits of being an entrepreneur is the opportunity of gainful money-making.
Profitability
Assumed selling price
Sales
Assumed raw materials (for products) or worker salaries (for services).
Expenses
It will help you find out ways of distinguishing your product or service from those already in the market and give you the market position you aim for.
Innovation or Differentiation
created out of the business opportunities which the entrepreneur should seek to exploit
Business Venture
What are the two critical steps in the strategic process?
- Analysis of the organization
- Analysis of the environment
What technique is used as an approach to the two critical steps?
SWOT Analysis
What is SWOT Analysis?
- Internal analysis of Strengths and Weaknesses; and
- External analysis of Opportunities, and Threats.
Advantages of your products/services over similar offerings in the market.
Strengths
What are the examples of strengths?
- government incentives
- low capital requirements
- market acceptance
- experienced leaders
Perceived limitations of your products and services. These are your weak points.
Weaknesses
What are the examples of weaknesses?
- difficulty of organization
- costly set-up
- possible pollution problems
- lack of training workers
Things that happen outside of your business that can potentially be to the advantage of your products/services.
Opportunities
What are examples of opportunities?
- project may replace imported good available in the market
- will improve employee welfare
- improved company reputation
Harmful things that may potentially negatively affect your products/services.
Threats
What are some example of threats?
- entry of competitors
- time consuming production processes
- opposition from residents in the community
What are the internal factors of SWOT?
Strength and Weaknesses
What are the external factors of SWOT?
Opportunities and Threats
